Euro Disney stocks were in the red at a trading session midday on Monday after the company's shareholders agreed to a one-billion-euro (about 1.256 billion U.S. dollar) capital raise in a bid to find new financing to improve business productivity.

At 13:53 local time, shares of Euro Disney fell 6.07 percent to 3.25 euros on the Paris stock market CAC 40, when the company's announcement fuelled investors' worries.

"Given the degradation of the economic environment in Europe, debts are becoming more and more of a burden on our financial situation and this operation is aimed at fixing that and providing the capacity that we need to continue investing," Mark Stead, Euro Disney's finance director said in remarks posted on the company website.

According to Stead, the capital operation would help the entertainment resort because it would receive a 420-million-euro cash infusion and improve its cash position by about 250 million euros.

In addition, about 600 million euros of the group's debt -- owed to The Walt Disney Company -- will be converted into equity, while credit lines extended to Euro Disney by its parent company will also be consolidated.

Euro Disney is 40 percent owned by its American parent Walt Disney and 10 percent by the Saudi prince AlWaleed bin Talal. Endit

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